The 10 most digitally savvy countries in the world

In many countries, businesses, not the government, are responsible for promoting technology

By

JuricaDujmovic

Columnist

Ericsson

In this world, saturated with wars and violence, technology seems to be one of few things that keeps advancing and getting better.

Access to technology and global connectivity isn’t a privilege for the few, but an opportunity for many. It’s crucial for governments around the world to understand that information and communications technology (ICT) is a key ingredient of progress.

To measure and understand countries’ inclination to use opportunities that ICT creates, an index called NRI, the Network Readiness Index, has been developed. The index has a value from one to seven, with a higher number corresponding to a greater willingness to use technology.

NRI itself is created by taking into account three components:

1. The market, political, regulatory and infrastructure environment.

2. The readiness of businesses, government and individuals to use ICT.

3. The use of ICT among them.

NRI is used in this year’s Global Information Technology Report by the World Economic Forum. This year’s edition assesses how successfully 139 countries have adapted policies and institutions “to fully leverage information and communications technologies (ICTs) for increased competitiveness and well-being.”

So here are the 10 most digital-savvy countries in the world highlighted in the report:

10. Japan: 5.65 NRI (out of 7)

Japan’s NRI has increased from 5.2 in 2013 to 5.65 in 2016. High scores are for the intensity of local competition (6.3) and the availability of latest technologies (6.2). Those two indicators tell a story of a high-tech country with healthy market competition. Although the government isn’t leading the way in the country’s tech usage, it does provide a solid legal framework for its adoption. This framework, in turn, boosts the real tech accelerators: businesses and individuals. Fun fact: WEF has highlighted Japan for having the highest robot density in the world — 1.5 robots for every 10 people.

9. Luxembourg: 5.67 NRI

This small European country knows the importance of technology and its regulation. That’s why it has the most sophisticated set of laws pertaining to ICT. A robust regulatory framework, combined with venture-capital availability and access to new tech through government-procurement efforts, provides a nurturing environment for modern technology. WEF highlighted Luxembourg for the number of residents with highly skilled jobs — the country holds first place on a global scale, with 62.3% of workers in that category.

8. U.K.: 5.72 NRI

The U.K., home to 17 tech unicorns (companies valued at more than $1 billion), has a host of factors working together: venture-capital availability, quality of management schools and government procurement of tech. The NRI values of those indicators are high, and rose from last year. U.K. businesses rank first in using the internet to provide services and products to consumers, and are second in B2B (business to business). It will be interesting to see how Brexit will affect this index.

7. Switzerland: 5.75 NRI

The home of private banking, chocolate and … servers! The report ranks Switzerland second out of 10 European countries in a tell-tale category: It has the greatest data center surface area per capita. One would assume this is due to government investment in tech, but, curiously, that isn’t the case. Although the Swiss government doesn’t sufficiently use digital technology, businesses more than make up for it: They rank first in technology usage in B2B. Switzerland also leads in the quality of management schools, the extent of staff training and the capacity for innovation, all of which has contributed to its high score.

6. The Netherlands: 5.81 NRI

In July, the Netherlands became the first country to have a nationwide network dedicated to the Internet of Things. The country’s mobile-internet fees are particularly high, and broadband prices are rising. Still, the position it holds is rightfully deserved. The Dutch are the most tech-savvy and connected in the world, which is reflected in both business- and government-tech adoption. That said, the Netherlands dropped two places from 2015. One can only hope this is due to slower-than-usual growth rather than the start of a negative trend.

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